Friday, February 27, 2009
Obama has proposed a cap and trade in his most first budget. I think increasing taxes during a recession isn't necessarily wise. However, at some point in the near future we will need to increase taxes. I think that for the time being Obama can use the cap and trade revenues to offset the employer portion of the payroll tax which would effectively diminish the cost of labor (thus hopefully stemming the unemployment tide). Once the economy has stopped cratering the payroll tax cut can be phased out and the revenues from the cap and trade can be directed towards deficit reduction.